Student car insurance can be expensive, but being a student is only part of the picture. Age, driving experience, vehicle choice, location, coverage level, driving history, and whether the student stays on a family policy can all have a major effect on the final premium.
Current rate studies show why there is no single “student insurance price.” A college student added to an existing family policy can face a very different cost than a student buying a standalone policy, even when both drivers are the same age.
How Much Does Car Insurance Cost for Students?
Published averages are useful for understanding the scale of student insurance costs, but they should not be treated as personalized quotes.
NerdWallet’s current analysis found that adding an 18-year-old college student to a policy already covering two adults increased the household’s auto insurance cost by an average of about $189 per month.[1]
The Zebra currently estimates that college students may pay roughly $250 to $450 per month, depending on the driver profile, insurer, age, coverage, and other factors used in its methodology.[2]
Young drivers generally pay more because they have less driving experience and higher claim risk. The cost tends to improve as drivers gain age and experience.
NerdWallet and The Zebra use different household structures, driver profiles, insurers, vehicles, coverage levels, and methodologies. The right way to use these figures is as context—not as a prediction of what your own policy will cost.
Students comparing ways to reduce insurance costs can also evaluate lower-cost car insurance options for students while keeping the coverage they need.
Parents’ Policy vs. a Student’s Own Policy
For many college-age drivers, the way the policy is structured can matter almost as much as the company providing it.
Stay on a Parent or Guardian’s Policy
When eligibility and living arrangements allow it, remaining on an existing household policy will often cost less than purchasing an entirely separate policy.
- The household may already receive multi-car or multi-policy discounts.
- The student’s cost is added to an established policy rather than priced completely on its own.
- The premium will still rise when a young driver is added.
- The student must be listed and rated correctly based on where the vehicle is kept and how it is used.
Buy an Individual Student Policy
A separate policy may be necessary or appropriate depending on residence, vehicle ownership, school location, and the insurer’s underwriting rules.
- The student may lose some pricing advantages available through an established family auto policy, although separate-policy discounts may still apply.
- A separate residence or vehicle ownership arrangement may change eligibility.
- Coverage limits and deductibles can be selected independently.
- Shopping several insurers becomes especially important.
NerdWallet notes that adding a college-age driver to an existing policy will raise the household premium, but that a family policy will often cost less than a separate standalone policy for the student.[1]
Why Student Car Insurance Usually Costs More
Student status itself is not the main reason many students see expensive insurance. A large part of the difference comes from the fact that many students are also young or relatively inexperienced drivers.
New drivers have limited experience, so insurance costs are commonly highest in the early driving years.
Rates may begin improving, but young-driver pricing can still be substantial.
Premiums often improve as young drivers gain age and driving experience, although the amount and timing vary by insurer and driver.
The Zebra’s current student-discount analysis reports that drivers ages 16 to 25 pay substantially more than its overall driver benchmark, illustrating how strongly age and experience can influence student insurance costs.[3]
Because age and limited driving experience can significantly affect premiums, younger motorists may benefit from comparing available car insurance options for young drivers before choosing a policy.
Factors That Affect Student Car Insurance Cost
Insurers combine many rating variables when calculating a premium. The weight given to each factor differs by company and by state.
Younger and newly licensed drivers generally have less experience for insurers to evaluate.
Tickets, at-fault accidents, claims, and other driving-history events can increase the cost of coverage.
Repair cost, value, safety features, theft experience, performance characteristics, and other vehicle factors can affect premiums.
Where the vehicle is kept and how much it is driven can change the insurer’s assessment of exposure.
Higher liability limits and broader physical-damage coverage generally cost more, while larger comprehensive or collision deductibles may reduce the premium.
Depending on state law, insurers may also consider factors such as gender, credit-based insurance information, prior coverage, and household characteristics.
Discounts Can Offset Part of the Cost
Student discounts are worth checking, but they should be treated as one part of the total premium rather than as proof that one insurer will be cheapest.
Good Student
Some insurers reward students who meet academic-performance requirements.
Example: State Farm advertises savings of up to 25% for qualifying good students.[4]Student Away at School
Some policies may offer savings when an eligible student attends school away from home and only drives the insured vehicle during visits or school breaks.
Eligibility and distance requirements vary by insurer.Driver Training
Approved driver education or training programs may qualify younger motorists for savings with certain insurers.
Age and course requirements vary.Low Mileage or Telematics
Students who drive relatively little or participate in eligible usage-based programs may have additional savings opportunities.
Programs and availability differ by carrier and state.State Farm currently advertises a good-student discount of up to 25% for qualifying full-time high school or college students and also offers student-away-at-school and driver-training discounts subject to eligibility requirements.[4]
State Farm’s student-related discounts are only examples of the savings programs insurers may offer. Eligibility for student car insurance discounts may depend on factors such as academic performance, mileage, driver training, and the insurer’s own qualification rules.
What If the Student Goes Away to School Without the Car?
A student who leaves the family vehicle at home may have a different insurance situation from a student who takes a car to campus.
Do not simply remove the student from the policy.
The correct approach depends on residence, vehicle access, ownership, school location, and the insurer’s rules. Removing a driver who still regularly uses the vehicle can create coverage problems.
If the student does not own a car but still needs continuous liability protection, ask an insurer whether remaining on the family policy or another coverage arrangement is appropriate.
Coverage Choices Can Change the Student’s Premium
Reducing coverage may lower the bill, but the cheaper policy is not necessarily the better financial choice.
| Policy choice | Potential effect on premium | What to consider |
|---|---|---|
| Higher liability limits | May increase cost | Provides more protection when the student causes a covered accident. |
| Collision coverage | Adds cost | Can help repair or replace the student’s vehicle after a covered collision, subject to the deductible. |
| Comprehensive coverage | Adds cost | Can cover eligible non-collision losses such as theft, weather, vandalism, or animal strikes. |
| Higher deductible | May reduce cost | The student or family must be able to pay the larger deductible after a covered loss. |
| Older low-value vehicle | May change physical-damage needs | Compare the cost of comprehensive and collision with the vehicle’s value and your ability to replace it. |
Before reducing protection solely to make a student policy cheaper, remember that coverage limits determine how much financial protection a policy provides and how much risk remains with the household after a serious claim.
How Students and Families Can Lower Car Insurance Costs
The most effective approach is usually a combination of policy structure, discounts, vehicle choice, and repeated quote comparisons.
Price the Family Policy First
Ask how much the existing household policy would increase when the student is added correctly.
Get Standalone Quotes Too
If a separate policy is an option, compare it against the incremental cost of keeping the student on the family policy.
Ask for Every Student Discount
Good grades, driver education, student-away status, telematics, mileage, and household bundling can all be worth checking.
Choose the Vehicle Carefully
Before buying a car for a student, obtain an insurance quote for that specific vehicle. A cheaper purchase price does not always mean cheaper insurance.
Compare Identical Coverage
The NAIC recommends using the same or similar limits, coverages, and deductibles when comparing insurers so that price differences are meaningful.[5]
Re-Shop as the Student Gets Older
Age, driving experience, a cleaner driving history, graduation, moving, or changes in vehicle use can all change which insurer offers the best price.
Do Not Compare Premiums Without Comparing Coverage
A $220 monthly student quote is not necessarily better than a $260 quote if the cheaper policy has lower liability limits, higher deductibles, or removes important protection.
When comparing insurers, keep the following consistent:
- Liability limits
- Comprehensive and collision selections
- Deductible amounts
- Listed drivers
- Vehicle and garaging location
- Annual mileage
- Optional coverage
Using consistent coverage limits when comparing car insurance quotes from multiple insurers can help you make a more accurate cost comparison.
Frequently Asked Questions About Student Car Insurance Cost
How much does student car insurance cost per month?
There is no universal student rate. The Zebra currently places college-student premiums around $250 to $450 per month in its analysis, while NerdWallet found that adding an 18-year-old college student to an existing two-adult family policy increased the premium by an average of about $189 per month. Different methodologies and household structures explain part of the difference.[1][2]
Is it cheaper for a student to stay on a parent’s car insurance?
Often, yes, when the student remains eligible for the household policy. NerdWallet notes that an existing policy will become more expensive after adding a college-age driver, but the total cost will often be lower than the student purchasing a standalone policy.[1]
Why is car insurance so expensive for college students?
Many college students are young drivers with relatively limited driving experience. Age, driving history, location, vehicle type, coverage, mileage, policy structure, and other permitted rating factors can all affect the premium.
Can good grades lower student car insurance costs?
They can with insurers that offer a good-student discount. For example, State Farm currently advertises savings of up to 25% for qualifying students who meet its academic and eligibility requirements. Availability and rules vary by insurer and state.[4]
Does a student need insurance if they leave the car at home?
The answer depends on the student’s residence, access to household vehicles, vehicle ownership, and insurer rules. Some companies offer student-away-at-school discounts rather than removing the student entirely from the policy. Always tell the insurer where the student lives and how often they use the vehicle.
Does student car insurance get cheaper at age 25?
Insurance costs often improve gradually as young drivers gain age and driving experience, but age 25 is not a universal switch that automatically produces a specific discount. Your insurer will continue considering the full rating profile.
Which company is cheapest for student car insurance?
There is no carrier that is cheapest for every student. Age, location, household policy structure, vehicle, driving history, and eligibility can change the ranking significantly. Our student car insurance comparison guide focuses specifically on evaluating competing insurers and policies.
Compare Student Insurance Using the Same Coverage
Start by pricing the student’s current household arrangement, then compare additional insurers using identical limits, deductibles, drivers, and vehicle information. That makes it easier to separate real savings from simply buying less protection.
Compare Car Insurance QuotesReferences
- NerdWallet. “Cheap Car Insurance for College Students.” Current analysis of college-student insurance costs, family policies, and standalone coverage considerations. NerdWallet ↩
- The Zebra. “Car Insurance for Students.” Current student and college-driver rate benchmarks and insurer comparisons. The Zebra ↩
- The Zebra. “Student Discount for Car Insurance.” Current information on young-driver rates, good-student discounts, and student savings. The Zebra ↩
- State Farm. “Auto Insurance Discounts.” Good Student, Driver Training, and Student Away at School discount eligibility information. State Farm ↩
- National Association of Insurance Commissioners. Consumer Shopping Tool for Auto Insurance. Guidance on rating factors, discounts, and comparing equivalent coverage and deductibles. NAIC ↩